ACIT, Jaipur V. JAIPUR STOCK EXCHANGE LTD., Jaipur

ITA 1012/JPR/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 5255 (ITAT-JAIPUR)
• Duration Of Justice: 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 28-12-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P BHATEJA
• Assessee Lawyers: USHA SHARMA GM DHK

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR JH HKKXPUN] YS[KK LNL; ,OA JH YFYR DQEKJ] U;KF;D LN L; DS LE{K BEFORE:SHRI BHAGCHAND, AM & SHRI LALIET KUMAR, J M VK;DJ VIHY LA-@ ITA NO. 1012/JP/2015 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2012-13 THE ACIT CIRCLE- 6 JAIPUR CUKE VS. M/S. JAIPUR STOCK EXCHANGE LTD. STOCK EXCHANGE BUILDING, MALVIYA NAGAR, JLN MARG, JAIPUR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO .: AABCJ 0362 L VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI O.P. BHATEJA, ADDL CIT -DR FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SMT. USHA SHARMA,GM LQUOKBZ DH RKJH[K@ DATE OF HEARING : 14/06/2016 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 16 /06/2016 VKNS'K@ ORDER PER BHAGCHAND, AM THE REVENUE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A)-II, JAIPUR DATED 26-10-2015 FOR THE ASSESSME NT YEAR 2012-13 RAISING THEREIN FOLLOWING GROUND OF APPEAL. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) HAS ERRED IN DELETIN G THE ADDITION OF RS. 66,73,800/- MADE ON ACCOUNT OF ANN UAL ITA NO. 1012/JP/2015 ACIT, CIRCLE- 6,JAIPUR VS. M/S. JAIPUR STOCK EXCHAN GE LTD. , JAIPUR . 2 LISTING FEES RECEIVED BY ASSESSEE FROM ITS MEMBERS ON ACCRUAL BASIS. 2.1 AT THE OUTSET OF THE HEARING , THE LD. AR OF TH E ASSESSEE SUBMITTED THAT THE ISSUE IN QUESTION IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISIONS OF COORDINATE BENCH OF ITAT, JAIPUR IN A SSESSEES OWN CASE FOR A.Y. 2006-07, 2007-08, 2009-10 , 2010-11 AND 2 011-12 2.2 THE LD. CIT(A) FOLLOWING THE EARLIER ORDERS OF THE COORDINATE BENCH HAS DELETED THE ADDITION. THE RELEVANT OBSER VATIONS OF THE LD. CIT(A) ARE REPRODUCED AS UNDER: 3.3 I HAVE CONSIDERED THE FACTS OF THE CASE, ASSES SMENT ORDER AND SUBMISSIONS OF THE APPELLANT. SAME ISSUE WAS INVOLV ED IN THE CASE OF APPELLANT IN AYS 2006-07, 2007-08, 2009-10, 20 10-11 AND 2011-12. THE ITAT, JAIPUR HAS DECIDED THIS ISSUE I N FAVOUR OF THE ASSESSEE FOR AYS. 2006-07 (ITA NO. 703/JP/2009) AND 2007-08 (ITA NO. 61/JP/10). THE CIT(A) HAS DECIDED THIS I SSUE IN FAVOUR OF THE ASSESSEE FOR AYS 2009-10, 2010-11 AND 2011- 12. THE RELEVANT EXTRACT OF THE ORDER OF ITAT, JAIPUR FOR A Y 2007-08 IN ITA NO.661/JP/2010 IS GIVEN BELOW: 32. AFTER HAVING GONE THROUGH THE ABOVE DECISI ONS, WE FIND THAT THERE IS SUBSTANCE IN THE ABOVE CONTEN TION OF THE LD. AR. THE HONBLE SUPREME COURT OF INDIA IN THE CASE OF CIT VS. SHOORJI VALLABHADAS & CO. (SUPRA) HAS HELD THAT IF ITA NO. 1012/JP/2015 ACIT, CIRCLE- 6,JAIPUR VS. M/S. JAIPUR STOCK EXCHAN GE LTD. , JAIPUR . 3 ANY ACCRUAL SYSTEM, THE PROBABILITY OR IMPROBABILIT Y OF REALIZATION HAS ALSO TO BE CONSIDERED IN A REALISTI C MANNER. IN THE CASE OF CHAINROOP SAMPATRAM VS. CIT, SUPRA, THE HONBLE APEX COURT HELD THAT WHILE ANTICIPATED LOSS IS TAKEN INTO ACCOUNT, ANTICIPATED PROFIT IS NOT BROUGHT IN ACCOUNT AS NO PRUDENT TRADE WOULD CARE TO SHOW INCREASED PROFI T BEFORE ITS ACTUAL REALIZATION. THE SAME PRINCIPLE HAS BEEN FOLLOWED BY MUMBAI BENCH TRIBUNAL IN ITS RECENT DECISION IN THE CASE OF WESTERN MAHARASHTRA DEVELOPMENT CORP. LTD. VS. DCIT (SUPRA). 33. THE FIRST APPELLATE ORDER ON THE ISSUE IS COMPREHENSIVE AND REASONED ONE. WE ARE THEREFORE, NOT INCLINED TO INTERFERE WITH THE ORDER OF THE LD. CIT (A) WHICH IS UPHELD. THUS GROUND NO.2 OF THE REVENUE IS REJECTED . 34. SINCE THE FACTS ARE IDENTICAL IN THIS YEAR, FOLLOWI NG THE ABOVE ORDERS, THE AO IS DIRECTED TO DELETE THE ABOVE ADDI TION. THIS GROUND IS ALLOWED. 2.3 THE LD. DR RELIED ON THE ORDER OF THE AO 2.4 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. RESPECTFULLY FOLLOWING THE DE CISIONS OF COORDINATE BENCH OF ITAT JAIPUR OF EARLIER YEARS IN ASSESSEE S OWN CASE (SUPRA), ITA NO. 1012/JP/2015 ACIT, CIRCLE- 6,JAIPUR VS. M/S. JAIPUR STOCK EXCHAN GE LTD. , JAIPUR . 4 WE UPHOLD THE ORDER OF THE LD. CIT(A) ON THIS ISSUE . THUS THE SOLITARY GROUND OF THE REVENUE IS DISMISSED. 3.0 IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16-06-2016. SD/- SD/- YFYR DQEKJ HKKXPUN (LALIET KUMAR) (BHAGCHAND ) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 16 /06/ 2016 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- THE ACIT, CIRCLE- 6, JAIPUR 2. IZR;FKHZ@ THE RESPONDENT- M/S. JAIPUR STOCK EXCHANGE LTD. , JAIPUR 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 1012/JP/2015) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR